The dollar index and dollar index futures rose slightly and remained close to levels last seen in early-April

The dollar steadied at a six-week high in Asian trade on Friday as markets remained focused on negotiations to end the Iran-U.S. war.

The yen weakened slightly following softer-than-expected consumer inflation data for April, although markets broadly maintained expectations for more interest rate hikes by the Bank of Japan.

Broader Asian currencies largely weakened as uncertainty over the Iran war and its impact on interest rates kept traders risk-averse. Most units were also headed for weekly declines.

The dollar index and dollar index futures rose slightly and remained close to levels last seen in early-April.

The U.S. dollar was set for a flat weekly performance, having clocked sharp swings this week amid mixed cues on Iran-U.S. negotiations.

The yen’s USD/JPY pair added 0.1% on Friday, rising back above 159 yen.

Japanese consumer price index inflation dropped to a four-year low in April, as did core inflation, which remained well below the BOJ’s 2% annual target.

But the softer inflation print was largely driven by government subsidies on electricity and gas, with underlying inflation remaining relatively upbeat.

This kept expectations for more interest rate hikes by the BOJ largely intact. The central bank is expected to raise interest rates at an upcoming meeting in June.

Broader Asian currencies moved in a flat-to-low range. The yuan’s USD/CNY pair was flat, as was the Taiwan dollar’s USD/TWD pair.

The Australian dollar’s AUD/USD pair dropped 0.1%, extending losses after weak April jobs data on Thursday.

The won’s USD/KRW pair rose 0.4% and was close to its highest level since early-April. The Indian rupee’s USD/INR pair advanced 0.3% after declining from record highs of near 97 rupees on Thursday, following reports that the Reserve Bank of India was intervening to support the currency.